Education
About Us
Working with TipRanks
Follow Us
BTB REIT Un (TSE:BTB.UN)
TSX:BTB.UN
Top Page
BTB REIT
(TSX:BTB.UN)
Select Model
Select Model
Rating:78Outperform
Price Target:
C$4.50
â–²(20.00% Upside)
Action:ReiteratedDate:12/19/25
BTB REIT's strong valuation and technical indicators are the most significant factors contributing to its high score. The company's robust financial performance and positive earnings call sentiment further support the stock's attractiveness. However, high leverage and industrial vacancy challenges are risks to monitor.
Positive Factors
Revenue Growth
The robust revenue growth indicates strong demand and effective portfolio management, contributing to sustainable financial performance.
Leasing Activity
Strong leasing activity, including major agreements, enhances occupancy rates and ensures steady rental income, supporting long-term stability.
Rental Spreads
Higher rental spreads reflect strong market positioning and pricing power, contributing to improved profitability and cash flow.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to interest rate changes, impacting long-term health.
Industrial Vacancy
Significant industrial vacancies can reduce occupancy rates and rental income, challenging cash flow and financial performance.
Decline in Free Cash Flow
A decline in free cash flow growth may hinder investment capacity and limit the ability to manage debt, affecting future growth potential.
BTB REIT (BTB.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$331.01M
Dividend Yield7.37%
Average Volume (3M)107.12K
Price to Earnings (P/E)16.2
Beta (1Y)0.73
Revenue Growth0.92%
EPS Growth92.93%
CountryCA
Employees81
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.07
Shares Outstanding88,268,680
10 Day Avg. Volume159,813
30 Day Avg. Volume107,124
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)0.74
Price to Sales (P/S)2.79
P/FCF Ratio9.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.13Price Target Upside10.13% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.36
Revenue Forecast (FY)C$132.92M
BTB REIT Business Overview & Revenue Model
Company DescriptionBTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. As at November 10th, 2020, BTB owns 64 retail, office and industrial properties for a total leasable area of approximately 5.3 million square feet and an approximate total asset value as of September 30th, 2020 of approximately of $946M.
How the Company Makes MoneyBTB REIT generates revenue primarily through the rental income derived from its properties. This includes leasing agreements with commercial tenants in its diversified portfolio, which spans office spaces, retail units, and industrial properties. The company benefits from long-term lease contracts that provide consistent cash flow and contribute to its financial stability. Additionally, BTB REIT may realize capital appreciation through property improvements and strategic acquisitions, further enhancing its income potential. Partnerships with property management firms and local real estate brokers can also contribute to optimizing occupancy rates and tenant retention, thereby boosting overall revenue.
BTB REIT Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call reflects a generally constructive operating backdrop: strong leasing activity, notable rent renewal increases (10.6% year), key new lease wins with no downtime, a year-over-year increase in annual cash NOI (1.9%) and a small rise in AFFO per unit. The balance sheet posture improved with lower mortgage and total debt ratios and >$30 million in liquidity. Short-term challenges include a modest Q4 revenue/NOI decline, several sizable vacancies (notably a 132k sq ft position in Montreal), quarter-over-quarter FFO/AFFO softness, and exposure to near-term refinancing given a 2.3-year average mortgage term. On net, the positive leasing momentum, rent gains, annual cash flow improvements and stronger liquidity/credit metrics outweigh the near-term operational headwinds, supporting an overall positive view heading into 2026.Q4-2025 Updates
Positive Updates
Portfolio Size and Appraisals
BTB owns $1.2 billion of real estate; 58% of properties were externally appraised in 2025. The weighted average cap rate remained stable at 6.7% year-over-year.
Strong Leasing Activity and Rent Growth
Total leasing activity for the year totaled ~742,162 sq ft (approx. 474k sq ft renewals and ~268k sq ft new leases). Average rent increases on renewals were +10.6% for the year (6.7% for the quarter). Suburban office renewal rents increased ~12.4% for the year and necessity-based retail increased ~6.4% for the year.
Notable New Leases and Tenant Expansions
Key new leases included Kraft Heinz (80,000 sq ft, Industrial, Montreal), Value Village (30,000 sq ft, Necessity Retail, Montreal) and XCMG Canada (30,000 sq ft, Industrial, Edmonton). Several existing tenants expanded (e.g., Government of Canada +14,000 sq ft). These replacements had no downtime and increased NOI at those properties.
Improved Annual Cash NOI and AFFO
For the full year, cash NOI increased by 1.9% and adjusted AFFO per unit increased to $0.388 (up $0.007 vs prior year). The AFFO adjusted payout ratio improved modestly to ~77% for the year (down 1.4 percentage points vs 2024).
Debt Metrics and Liquidity
Mortgage debt ratio lowered to ~51.3% and total debt ratio lowered to ~57%. Weighted average mortgage term 2.3 years and average interest rate 4.5%. Cash on hand was over $5 million and $25 million available under credit facilities, for total liquidity > $30 million.
Capital Recycling and Dispositions
Disposed of 3 non-core assets during 2025 for gross proceeds of almost $20 million and net proceeds close to $14 million, supporting portfolio focus on industrial and higher-return assets.
ESG Progress
Released second ESG report in June 2025 and obtained 13 BOMA BEST certifications for properties in Quebec, demonstrating ongoing ESG activity and certifications.
Negative Updates
Quarterly Revenue and NOI Declines
Q4 rental revenue was $32.3 million, down 1% YoY. NOI and cash NOI declined by 4.4% and 5.1% respectively for the quarter versus the same period last year. Cash same-property NOI decreased 3.3% for the quarter.
Occupancy Pressure from Large Vacancies
Year-end occupancy fell to 91.3% (a 20-basis-point decline vs Q3). A 132,000 sq ft vacancy in Laval/Montreal (~2.2% portfolio impact) remains unresolved; additional notable vacancies include ~28,000 sq ft in Ottawa (government non-renewal), ~24,000 sq ft in Edmonton (tenant built own building), and ~33,000 sq ft in Edmonton following lease termination for default.
Short-Term NOI Headwinds and One-Time Items
Quarterly NOI was impacted by free rent granted to new tenants (e.g., XCMG) and non-recoverable one-time expenses in the Office segment. Planned tenant departures in Industrial (Edmonton) also pressured quarterly performance.
Seasonal/Quarterly FFO/AFFO Declines
FFO adjusted per unit for the quarter was $0.097 (down $0.012 YoY). AFFO adjusted per unit for the quarter was $0.088 (down $0.013 YoY), indicating short-term earnings pressure despite annual improvements.
Minor Valuation Loss
External appraisal exercise resulted in a portfolio valuation loss of $4.7 million, representing ~0.4% of total portfolio value in 2025.
Interest Rate and Re-financing Risk
Weighted average mortgage term is relatively short at 2.3 years with a 4.5% average interest rate, which could expose the REIT to refinancing risk if rates remain elevated.
Company Guidance
Management guided that leasing momentum should persist in 2026 with the expectation that the large 132,000 sq ft Montreal vacancy will find a user during 2026 and that the only known large non‑renewal is the ~100,000 sq ft Walkley Road office (lease ends end‑August, ~ $30/sq ft gross impact), while overall portfolio metrics to watch are: occupancy 91.3%, total annual leasing activity ~742,162 sq ft (new ~260–268k sq ft; renewals ~470–474k sq ft), annual average renewal rent increase 10.6% (Q renewal +6.7%; suburban office +12.4% Y/Y, +5.8% Q; necessity retail +6.4% Y/Y, +7.8% Q), notable new leases Kraft Heinz 80k, XCMG 30k, Value Village 30k, and financial/balance‑sheet parameters of $1.2B investment properties (58% externally appraised), weighted average cap rate 6.7%, mortgage debt ratio 51.3%, total debt ratio 57%, weighted avg mortgage term 2.3 years, avg mortgage rate 4.5%, liquidity >$30M (cash >$5M + $25M available), maintained distribution $0.075/quarter ($0.30 annualized) with AFFO payout ~77% and AFFO per unit $0.388 for the year, and management said it may pursue equity capital in 2026–27 to grow toward a 60% industrial target.BTB REIT Financial Statement Overview
Summary
BTB REIT demonstrates strong financial performance with robust revenue growth and profitability. The high leverage is a potential risk, but the company effectively manages its operations and cash flows. Continued focus on improving cash flow growth and managing debt levels will be crucial for sustaining financial health.Income Statement
BTB REIT shows strong profitability with a consistent increase in gross and net profit margins over the years. The TTM data reflects a significant revenue growth rate of 28.5%, indicating robust top-line expansion. EBIT and EBITDA margins are also healthy, suggesting efficient operational management. However, the slight decline in gross profit margin from the previous year may warrant attention.78
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, which is typical for REITs but poses a leverage risk. The equity ratio is stable, and the return on equity has shown improvement, indicating effective use of shareholders' funds. Despite the high leverage, the company maintains a solid asset base.65
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth, but the operating cash flow to net income ratio remains strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, reflecting efficient cash conversion. The negative growth in free cash flow is a concern that needs monitoring.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 130.14M | 130.03M | 127.83M | 119.50M | 100.34M |
| Gross Profit | 74.77M | 75.05M | 75.38M | 70.43M | 56.34M |
| EBITDA | 59.45M | 75.84M | 71.30M | 63.12M | 49.58M |
| Net Income | 22.37M | 38.74M | 36.60M | 38.15M | 17.36M |
Balance Sheet | |||||
| Total Assets | 1.24B | 1.26B | 1.23B | 1.18B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 5.43M | 2.47M | 912.00K | 2.40M | 7.19M |
| Total Debt | 729.08M | 735.24M | 724.23M | 692.15M | 687.72M |
| Total Liabilities | 752.95M | 761.72M | 749.99M | 717.27M | 725.48M |
| Stockholders Equity | 490.97M | 494.28M | 477.65M | 462.07M | 404.43M |
Cash Flow | |||||
| Free Cash Flow | 37.32M | 66.00M | 70.80M | 131.95M | 56.34M |
| Operating Cash Flow | 37.49M | 66.00M | 70.85M | 66.24M | 56.54M |
| Investing Cash Flow | 1.58M | -19.58M | -46.38M | -65.71M | -71.73M |
| Financing Cash Flow | -36.11M | -44.87M | -25.96M | 19.48M | 13.32M |
BTB REIT Technical Analysis
Negative
3.75
Price Trends
4.07
Negative
3.98
Negative
3.77
Negative
Market Momentum
-0.09
Positive
32.46
Neutral
47.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Negative. The current price of 3.75 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 4.07, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 32.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BTB.UN.
BTB REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$331.01M | 16.24 | 4.52% | 7.37% | 0.92% | 92.93% | |
71 Outperform | C$125.03M | 5.84 | 10.01% | 6.15% | 3.20% | 39.37% | |
66 Neutral | C$220.82M | 8.72 | 6.20% | 8.65% | 2.69% | -45.80% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$417.40M | 11.98 | 7.24% | 6.89% | 2.81% | 9677.19% | |
51 Neutral | C$268.80M | -2.47 | -40.17% | 269.20% | -33.76% | -125.67% | |
49 Neutral | C$429.58M | -25.11 | -1.91% | 3.85% | -5.37% | 13.86% |
* Real Estate Sector Average
TSE:BTB.UN
BTB REIT
3.75
0.60
19.09%
TSE:ERE.UN
European Residential Real Estate ate Investment Trust
1.15
0.15
15.46%
TSE:FCD.UN
Firm Capital Property
5.98
0.75
14.38%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
6.07
0.90
17.48%
TSE:MRT.UN
Morguard Real Estate ate
6.45
1.09
20.40%
TSE:PRV.UN
PRO Real Estate Investment
6.19
1.54
33.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.